US issues draft rules on private assets inclusion in 401k retirement plans
The U.S. Department of Labor's proposed rule creates safe harbors for fiduciaries to include alternative assets in 401(k)s, potentially unlocking trillions in retirement savings.
- On Monday, the U.S. Department of Labor issued a proposed rule to help 401 plans incorporate alternative assets like private equity and cryptocurrencies, fulfilling President Donald Trump's August executive order.
- The DOL's proposal creates 'process-based safe harbors' protecting fiduciaries from lawsuits if they objectively evaluate fees, liquidity, and complexity, targeting the roughly $12 trillion in defined-contribution retirement cash.
- Senator Elizabeth Warren and the Private Equity Stakeholder Project oppose the rule, with executive director Jim Baker calling it a 'bailout' for a struggling industry using retirement savings.
- Private credit firms face record investor withdrawals in the roughly $2 trillion industry; SEC Commissioner Mark Uyeda defended the rule as promoting free markets despite liquidity concerns.
- The proposed rule enters a 30- or 60-day public comment period before final Office of Information and Regulatory Affairs review; analyst Jaret Seiberg remains skeptical courts will protect fiduciaries from litigation.
65 Articles
65 Articles
Trump’s Crypto Boom And 401(k) Expansion: Will Digital Assets Join Retirement Plans? - Morgan Stanley (NY
The Department of Labor (DOL) has issued a proposed regulation that would allow retirement plans to include investments in alternative assets, specifically cryptocurrencies and private markets. "The overarching goal of the proposed regulation is to alleviate certain regulatory burdens and litigation risk that interfere with the ability of American workers to achieve, through their retirement accounts, the competitive returns and asset diversific…
Labor Department's proposal is a 'huge step' for your 401(k), BlackRock's Nefouse says
A proposed Department of Labor rule could significantly expand what Americans are able to hold inside their retirement accounts, potentially opening the door to assets like cryptocurrency, real estate and private markets.BlackRock Global Head of Retirement Solutions Nick Nefouse described the rule as "a huge step forward for the 401(k) market" while discussing what the change could mean for everyday investors during his appearance on "Varney & C…
Trump’s New Gift to Crypto and Private Equity: Access to Your 401(k)
Donald Trump has spent much of his second term using the U.S. presidency as a giant ATM for himself, his family, and his cronies. Now he’s devised a way for the cryptocurrency and private equity industries to do the same—while further lining his own pockets and putting Americans’ nest eggs at risk. The Trump administration on Monday announced plans to open 401(k) retirement plans to investments like crypto and private equity that are subject to …
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